Performance of the media sector this week: underperformed the CSI 300 and gem indexes. This week (4.11-4.15), the media industry fell 6.46%, underperforming the CSI 300 (- 0.99%) and the gem index (- 4.26%). Among them, Shenzhen Bingchuan Network Co.Ltd(300533) , Dongfang network, Guangxi Radio And Television Information Network Corporation Limited(600936) , St Jiaxin, Guizhou Bc&Tv Information Network Co.Ltd(600996) ; The leading declines were Visual China Group Co.Ltd(000681) , Bluefocus Intelligent Communications Group Co.Ltd(300058) , Sichuan Xun You Network Technology Co.Ltd(300467) , Jc Finance & Tax Interconnect Holdings Ltd(002530) , Shunya International Martech (Beijing) Co.Ltd(300612) , etc. On the whole, the theme of metauniverse has significantly callback, and some Q1 targets have excellent performance. In terms of horizontal comparison, the media sector ranked 28th in terms of rise and fall among all sectors this week, with a significant decline compared with last week.
Key attention: the game version number is restarted, and the three financial associations make a joint voice on NFT. a) The General Administration of press and publication disclosed the approval of the version number of the latest batch of 45 games in the evening of April 11, marking the official restart of the version number after the distribution of the version was suspended in August 21. In our opinion, 1) affected by multiple factors such as the suspension of game version number and the supervision of the Internet industry, the game sector has continued to adjust since the middle of 21 years. Under the background that the industry still maintains a certain growth rate, the valuation of the sector has continued to decline. The head companies such as Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) have approached the valuation level at the end of 18, which is significantly underestimated as a whole; 2) We continue to be optimistic about investment opportunities in the game sector. In the short term, the restart of the edition is expected to reduce policy uncertainty and boost market confidence. In the medium term, the restart of edition number will help release demand and improve the performance growth of the industry and listed companies. In the long run, the game goes to sea to further improve the growth ceiling of the head company, and yuanuniverse is expected to reshape the product form and Industry Valuation System; b) On April 13, China Internet Finance Association, Bank Of China Limited(601988) Industry Association and China Securities Industry Association jointly issued the proposal on preventing NFT related financial risks, proposing to resolutely curb the tendency of NFT financing and securitization and strictly prevent the risk of illegal financial activities. The initiative believes that NFT shows certain potential value in enriching the digital economy model and promoting the development of cultural and creative industries, but there are also potential risks such as speculation, money laundering and illegal financial activities. It puts forward requirements for code of conduct from six aspects.
Investment suggestions: 1) after the restart of the game edition, the prosperity and valuation are expected to rise up the mountain. It is suggested to seize the opportunity of double clicking from the bottom, combine the product portfolio and operation mode, and increase flexibility. A shares should focus on recommending Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , and pay attention to Perfect World Co.Ltd(002624) , Zhejiang Century Huatong Group Co.Ltd(002602) , Kingnet Network Co.Ltd(002517) . Hong Kong stocks recommend Dongxin company, BiliBili, and pay attention to the targets such as China Mobile Games and ZuLong entertainment; 2) policy bottom up, continuous optimistic about the overfall industry leader and some beneficial policies to improve the breakdown industries to upgrade possible, recommend subdivision sector leader Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , Mango Excellent Media Co.Ltd(300413) , Focus Media Information Technology Co.Ltd(002027) , Hong Kong stock recommended beep, bubble, Matt, fast hand and other targets and overall low valuation of the game board (recommended Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) , G-Bits Network Technology(Xiamen)Co.Ltd(603444) , Shanghai Yaoji Technology Co.Ltd(002605) , Kwai company and other targets); 3) The theme of yuancosmos has been fully adjusted. In the medium and long term, it is still expected to run through the whole year, and the segmentation continues to be optimistic: a) NFT of digital assets is expected to derive more application fields, focusing on Visual China Group Co.Ltd(000681) , Zhewen Interactive Group Co.Ltd(600986) , Three’S Company Media Group Co.Ltd(605168) , Zhejiang Huamei Holding Co.Ltd(000607) , Duzhe Publishing&Media Co.Ltd(603999) , Zhejiang Huace Film And Tv Co.Ltd(300133) , Fubo group, etc; b) Combined with NFT application, virtual digital human pays attention to the possibility of upward valuation of bottom marketing companies and film and television content companies, and pays attention to Bluefocus Intelligent Communications Group Co.Ltd(300058) , Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) , Saturday Co.Ltd(002291) , etc..
Risk tips: regulatory policy risks; Performance risk; Goodwill and asset impairment risk.
